Estimability in the Multinomial Probit Model
نویسندگان
چکیده
Random utility models often involve terms which represent alternative-specific errors, and the main attractive feature of the multinomial probit (MNP) model is that it allows a rather general covariance structure for these errors. However, since observed choices only reveal information regarding utility differences, and since scale cannot be determined, not all parameters in an arbitr~iry MNP specification may be identified. This paper examines identification restrictions that arise in the linear-in-parameters multinomial probit framework, and provides discussion and recommendations for estimation and analysis of probit normalizations.
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